roger ver, and charlie lee, the founder of light coin. all leading up to that special >> all right, thanks so much for watching "power lunch. >> "closing bell" starts right now. it's time for "the closing bell." i'm wilfred frost at the new york stock exchange. it's good to be back we've got stocks soaring to record highs on news of a trade deal between the u.s. and mexico all the details straight ahead i'm seema mody at the nasdaq the tech heavy hitting 8,000 for the first time ever. i'm break down the key movers. netflix is the third highest grossing app on apple's app store. the streaming giant is reportedly creating a system that could change all that and we've got the tesla short seller who said he was adding to his short position the day musk tweeted he was considering taking tesla

private. what he's doing now the company is staying public. "the closing bell" starts right now. ♪ star ships were meant to fly good afternoon and welcome to "the closing bell." welcome morgan brennen >> thank you i'm excited. and we're color coordinated. >> i see that. how did that happen? first let's check in on the markets. s&p, nasdaq, russell all hitting all-time highs today the dow crossing 26,000 for the first time since february. a strong rally across the board as you can see sectors like industrials, materials and financials leads the charge >> and dow, s&p and nasdaq are on pace to post their best august gains since 2014. we've got that new trade agreement with mexico that's helping to push stocks higher today. with that let's get over to

kayla tausche with the details >> an announcement today on certain parts of that agreement. specifically dealing with the content requirements in autos. the two countries saying that 75% of car contents will come from the u.s. and mexico, and half of the content will be made by workers making at least $16 an hour. that's designed to prevent outsourcing from the united states and keep a lot of car manufacturing here, as the president has said he wants to do there'll be no new tariffs on agricultural products. and importantly to the market there will be no sunset provision. this deal won't automatically expire after a period of time. and it will last 16 years. that being said, the president says that this is an enforceable deal it has been signed, which is not it case. but he did acknowledge the role that trade progress has had in the stock market today

listen >> we just signed a trade agreement with mexico, and it's a terrific agreement for everybody. it's been in the works for a long time. it's an agreement that a lot of people said couldn't be done, and we did something it was very special. great for our farmers, our workers. and our stock market just broke 26,000 for the first time ever in the history so today we have the highest stock price wave ever had, and we're very happy about that. i said that fast going to happen and it's happened. >> the question now is to what extent this deal with a localer case "d" is enforceable. certainly it does feel symboli because gop leaders on capitol hill as well as mexico say it is the clear preference to have canada as part of this trilateral deal. but importantly at a briefing this afternoon the mexican delegation said while it hopes that a trilateral deal is the

outcome, that the u.s. deal is enforceable, and that it has a deal with canada through tpp the question is if the u.s. doesn't make a separate deal with canada, what sort of business agreement will there be between those two countries? so we'll see what happens between these three countries as they continue their negotiations canada's foreign minister will be in washington tomorrow, according to a spokesperson. and then they have just a few days, morgan and wilf, to figure out whether this can be a trilateral deal, in fact >> so kayla clearly that's one of the first questions, whether there's a trilateral deal and what this means for canada but what does it mean for china? does china welcome this deal or make them fearful because the means they're going to have start to play the u.s. tune a little bit >> well, this deal doesn't necessarily have any immediate bearing on china the u.s. also has negotiations going on with europe and japan

how to more effectively use the world trade organization to challenge china and challenge some of its unfair trading practices. it is symbolic in a sense what the u.s. has been trying to do is sort out of some trade disputes it's had ongoing with allies like mexico, like canada and present a more united front against china. although, it does seem that the more urgent effort there is happening with europe and japan. >> kayla, thank you in d.c we're going to talk much more about with it national economic council director larry kudlow. >> meantime news of the trade agreements sending stocks to new highs. let's bring in bob pisani. >> you throw in great earnings, not coming down for the third and fourth quarter, great u.s. economy and throw in some optimism on the trade and you've got a very powerful rally.

particularly in these global industrial names that respond to trade. there's boeing, that's 40 points just on the dow jones industrial average. look at caterpillar, these typically move about 2% on optimism from traders. that's what's happening. these are almost 90 points in the dow just bethemselves. but something else is happening. we're getting some financial stocks starting to rally in the last two days. you've got 145 points in the dow just with three stocks right now. of course other industrial names tip clemove, not as much but 3m and united technologies. you get this roller coaster effect that brings the dow forward. anything lagging yeah, today we're getting some of the more defensive names that get a good run by themselves phizer hit new highs last week

and we saw lily hilting new highs on an earnings report a few weeks ago. they had been market leaders just not today it's really about all the cyclicales >> the nasdaq breaking above the 8,000 level for the first time ever today as well and seema mody on the market site with more >> it's all about trade, signs of trade tensions easing that's providing a nice lift to the broader market it's those faang names, chips, bio tech, all participating in today's rally. it's important to note the nasdaq has been the leader throughout the year. closing at 7,000 in early january. so it's taken about six months to get to 8,000, and does look like we'll be closing above that level today. chinese tech names, baidu, jd.com helped, and those stocks getting a lift by around 2% to 4% social media also contributing

to today's gains we're looking at twitter, facebook, snap among others, though traders say trade tension still seen as a big headwind for tech sure we may have a u.s.-mexico trade deal on the table. but is the u.s.-china negotiations that matters much more and the weaker dollar setup is also being cited as one reason why tech stocks have recently taken a leg up higher. guys, back to you. >> seema, thank you very much for that we're going to continue our discussion quincy crossbury, tim, and rick santelli good afternoon to you all. tim, i'm going to start with you. the market clearly enjoyed the news today and we're at record all-time high territory for the indices >> and i think particularly for the nasdaq to be above 8,000 is

significant. it was only when it missed 10% for a decade that a number people who have been ardent bulls on the faang stocks were concerned about that for a few weeks. they thought maybe we might be a pachyfaang here if this company is going to miss and those stocks were weak for three to five days they've worked through that match they closed at an all-time high friday. and the dow of course is lagging a bit, a lot of multinationals and stocks very sensitive to trade and the dollar, still a few hundred points away. >> quincy, when we see cyclicales rallying right now and you have names like caterpillar, dupont, 3m, et cetera particularly with trade deals unfolding with mexico and the u.s., is that perhaps coming a little too early given the fack that china is the bigger

threat to those stocks and industrials overall? >> the china issue is still there, but there's another element to this whole fickture and equation and that is that it looks like china is looking at it stabling its currency perhaps it's also sending a signal that they don't want to get involved with the president on whether or not they're manipulating their currency. never mind they don't want their currency leaving the country, and that has been helpful as has jerome powell's comments on friday but the bilateral agreement with mexico, all of this is extremely helpful. >> rick, let's talk about that and your views on the dollar clearly the dollar was weak yesterday and weaker again today on this trade deal does that make sense to you or

have we seen a 2018 top on the dollar >> it totally makes sense. the issue for the second part is hard to assess i would say i think the dollar is going to firm up again as we get later in the year. but i do think the intensity of some of the moves we had in early august probably won't be replicated and our guest, quincy, made some really excellent points regarding china. listen, if china is going to try to assume the role of u.s. in terms of the head organization of trade in that part of the world, it's going to have to look out for some of the emerging market economies that are so integral into that puzzle so whether they're letting their currency appreciate a bit against the dollar in deference to donald trump and the

administration comments of manipulation where or a survival issue keeping their new trading entities from seeing some balance sheet anxiety, the end result is the same and i think what it really underscores is how important this potential victory on mexican negotiations in the bilateral agreement is for this administration because whether the world wants to admit it or not the u.s. at this point in time is still the rainmaker of global trade, period and i think that's an issue that will work in this administration's favor with other deals now that they sort of have one in the pocket. >> tim, final word >> you know, getting back to his comment, rick's comments on the dollar, a number of weeks ago when trump made comments about the fed he got a lot of criticism and push back on it i don't believe for a second any

of his comments are going to effect it but it did peak the dollar guys, have to leave it there thank you all. coming up next on "the closing bell," elon musk's stunning reversal. news that the tesla's ceo is no longer considering taking the company private has of course sent that stock lower. but one man wasn't stunned by the news we'll speak with a hedge fund manager who added to his short position on musk's secured funding tweet. and later we've got netflix reportedly working on a way to get around app store thieves, and that could spell trouble for apple. we're going to explain that move straight ahead

welcome back to "the closing bell." we're up 243 points on the dow today. it's been a positive session, up 4% there are the winners. goldman sachs, dow dupont and caterpillar nicely reflecting the sector today >> it's been 20 days since

tesla's ceo elon musk sent his new infamous tweet saying funding secured to take his company private. but now musk backtracked writing a post late friday night, i might add, that tesla is staying public phil >> morgan, this is not a huge drop in shares in tesla today. and for the most part people are saying okay, we're back wherew were on august 7th as for why tesla will remain public, elon musk says while he had an opportunity to feel this whole process out, he said although a majority of the shareholders i spoke to said they would remain with tesla if we went private the sentiment in a nutshell was please don't do this there are a couple of factors why tesla was not going to pursue going private first of all, even though musk maintains they could have had the financing, he could have put

a deal together, it would have been tough a couple of reports out today saying musk had no interest in allowing someone like volkswagen to take a stake in the company small investors, by the way, they might not have been able to go along with the idea or with the investment of going private. and as a result of musk said i like those investors, i want them to be part of the company overall this was going to be hard to make happen. and barclay out with a note today saying this entire 20 day process now raises cracks in the credibility of both musk and tesla. they are maintaining their price target of just over $200 a share. and again the stock down just under 2% today not a huge reaction. the focus now turns to profitability in the third quarter. can that be achieved am. >> phil lebeau for us in chicago. back on august 7th when the funding secured news broke,

tesla shares were halted and when trading resumed a short seller joined us on "the closing bell." this is what he said >> my short as we speak, elon musk tweeted tweeted that funding was secured. and unless he comes up with some proof that funding was actually secured in some kind of subsequent filing, then he has committed market manipulation, and he has committed market fraud. >> i think we missed the top of that, which was gabe saying i'm adding to my short as we speak now we know the company will stay public. what's the next move let's bring in gabe hoffman. clearly a bit of a smile on your face there, gabe and we understand why. so you've increased your short position that's been proven right in the short term have you taken profits from that short? >> i haven't covered most of it. i think the data points are very

clear. tesla will miss their third quarter production most will reiterate guidance to assure investors operations are on track and i believe imminently in the next couple of months elon musk will be removed as the ceo of tesla. >> by the board or some outside investigation by had sec or whatever it might be >> the sec cnbc had an amazing interview with theresa goodeeb just this morning. if anyone thinks the sec is not serious about this matter, they absolutely are this was in my view the most egregious and naked example of securities fraud i've ever seen from a ceo in my 18 years as a hedge fund manager >> well, we want to dig into that more with you, gabe so stay with us. we're going to bring in someone

who's actually bullish on tesla. still bullish? >> yes, we are so tesla's one of our top positions at ark invest. we're happy the company is staying public we think the stock is severely undervalued today. our bold case is tesla could go to 4,000 over the next four years. we think of this is an autonomous electric vehicle company, and that's what gets it there. >> we can get to the fundamentals in a second, but the last 20 days, whether we're questioning the leadership, whether the all important ceo and brain behind this is overtired and overworked, has you reduced your price target because of that? >> our long-term thesis remains unchanged. we're certainly following the story. elon musk has really been transparent through twitter more so than other ceos and sometimes that brings in extra scrutiny

but it also tells us what's happening in terms of the operational balance of the company, because he tends to be pretty honest. we think tesla needs elon musk to make this happen. he's a star figure he attracts amazing engineering talent and he's the person who gets his employees to put in the extra mile and meet those production targets. >> you're happy with the twitter use so far, including the funding secured, sec investigation, that doesn't bother you >> we're certainly following the investigation, but we've heard these talks have been going on for over a year. we heard musk did say his talks with the saudis have confirmed that he thinks he had that funding. again, we're happy with the decision to stay public. we think that's the right for tesla. we think like amazon it would appreciate as investors realize the long-term opportunity. tesla is three years ahead on battery technology, an autonomous data and an

autonomous hardware. no one can catch up to them at this point >> gabe, do agree no one can catch up with what they have and the quality of the cars they produce am. >> i believe the quality of cars was quite poor there was a business insider article just last week that talked about a number, a very low percentage of tesla model 3s during the first week at the end of the second quarter actually got through production without needing rework and there are pictures of thousands of cars on the internet right now at facilities sitting outside exposed to the elements needing rework. >> gabe, how often have you driven a tesla do you have one yourself >> i admit i do not. i look at the financials of the company. that tells me what's happening, and if we look at the bond market today, the tesla 2025 bonds are trading at a new high in yield, almost 8%. and the current ratio, which are

financial ratios any first or second year accounting student knows how to do are worse for tesla june 30th than general motors was one quarter before it filed bankruptcy >> what's your response to the financials the second half of this year is absolutely crucial are you concerned about the funding in that sense? >> we just heard this past quarter the model 3 is still profitable and tesla is rescaling we expect there could be more work than a company like general motors if you look at the long-term opportunity, it totally changes the business model if you buy a model 3 and you're able to connect it to the tesla network, their autonomous version, we think you can get pure cash. until tesla gets there, if they do need to raise money we think they can get to the equity

markets. so the short-term we think they're in a good position but if they need to we think they could raise 10 to $20 billion of capital, and we think they did that to scale >> thanks for joining us today we have minutes before the bell the dow is up right now. it's 2,634, up 224 points. and still ahead as is a market surge on the back of a trade deal with mexico we'll ask national economic director larry kudlow where trade stands. and up next what wall street firm is sick of the negative headlines surrounding chipotle sending the stock lower. that's coming up it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you?

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welcome back to "the closing bell." the dow is up 248 points right now. led higher by goldman sachs, cal pitter, dowdupont as we're about 32 minutes away from the closing bell let's check in on some of the individual market movers up first, chipotle downgraded. the firm is cosh on same store sales, expectations in the near term and also cautious about the expectation of more negative headlines related to food safety issues that stock is down right now about 4.5%

it's actually the worst performer in the s&p >> it is indeed. let's look at some strong performers today both jumping significantly ahead of some of the other big banks you've got around about a 3% or 4% move between the two of them. just positive move and momentum and what's that done not just in the equity market but the bond market we've seen the yield curve steeper a little bit the two tens spreads coming off an 1-year low. and i think that's geared in and the fact they've got some capital market exposure. >> also interesting given the fact we have what traders took to be a more dovish tone from fed chairman powell friday >> absolutely. banks along with industrials and materials top of the pile in terms of sectors today

>> tonight cnbc will air a new documentary that takes a dive into the world of bitcoin. a bitcoin millionaire who says he's risking his life for the movement >> talk to me about who you see the threat is in terms of your safety who are you guys afraid of >> security, so i can't talk about it >> he barely stopped talking and joking around until we broached the topic of his own personal safety >> there is a real threat. >> are you afraid of being hacked do you think you're a target because people think you're a millionaire, because you're talking about disrupting governments? >> all of the above. >> in fact, he wouldn't allow us to use his last name or reveal where he lives out of fear he says of being kidnapped. what happens if somebody kid naps you, and they say we want x

number of bitcoin, and they're given that cryptocurrency? do they get away are they not traceable anymore >> i'm not going to answer that. >> because the answer's yes. and that's just the tip of a very dark crypto iceberg >> what we're looking at here is drugstore, so everything here is in bitcoins. >> oh, right >> see they have a grand opening special for heroin in this case. >> he's an executive security advisor at ibm, and he took us on a disturbing tour of the dark web, an encrypted marketplace overrun with criminal and where bitcoin is the currency of choice cyber crime is not going away. bitcoins and cryptocurrency does make it a lot harder to track the money trail. >> so it's a lot easier today to be a criminal and not to get

caught >> exactly i always say it's a cat and mouse game >> bitcoin boom or bust premieres tonight. 6:00 p.m. eastern time, 3:00 p.m. pacific. you can visit cnbc.com slash bitcoin boom or bust for more sneak previews you also want to watch fast money, a cup of lead up guests this has been long in the works. i think it's going to be well worth watching it's going to be well revealing. >> that excerpt was revealing because it gets right at the heart what critics have pointed at bitcoin, which is the fact it's become sort of this currency of choice for i'm and sort of the underworld for the innet. >> the crypto kid has some interesting clothes as well. time now for a cnbc news update >> here's what's happening at this hour. more information today on the man accused of killing two and injuring 11 people at the madden

video game tournament in jacksonville, florida. authorities identifying the gunman at 24-year-old david katz from baltimore, maryland according to reports he was an avid gamer and won the 2017 buffalo bills championship neighbors say they heard an explosion prior to the blaze officials successfully put out the fire they're investigating the cause. adventure seekers from brazil, chile, peru, argentina and many other places taking part in the parasailing competition yesterday. descending to 5,700 feet above sea level. clearly for only the bravest of the brave or those who are crazy. and the vienna zoo is offering visitors a new artistic attraction paintings by their panda yang yang only 100 pieces will be made by

yang yang, and they will cost about $560 a piece that is the news update at this hour back to you guys she's abstract >> zoo related updates, sue. >> i know, that'll be my legacy, known for animals. >> we had some birds as well, which i think topped the list. >> i have more to come as well >> i can't wait, but i will. sue herrera as always, thank you very much. >> coming up retail stocks have been on a tear following strong earnings and one analyst says he's found a trend that could point to more up side in the coming months. we'll tell you about the new strategy uber's ceo is laying out for shorter trips. stick around we're back right after the break.

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welcome back to "the closing bell." we have just a little over 20

minutes from the closing bell. we've got the s&p 500 poised to close add a record high. it's up 21 points right now. every sector in the green except the two that aren't in utilities and real estate. which are leading the s&p higher, materials and financials >> hey, julia. >> hey, wilf well, netflix is the highest grossing nongaming app in apple's app store. but that might change. netflix is currently preventing new customers signing up via itunes and instead having them sign-up via a new version of netflix. it's cut dropping them to 15% after the first year netflix telling us, quote, we are constantly innovating and testing new signup approaches on

different platforms based on what our members like. mcquery estimates netflix could see a 1% increase to its 2019 revenue if it could move all future sign-ups to its own platforms but quote, netflix is unlikely to see much long-term benefit if they implement these changes on the broadside given the long penetration of subscribers. they could get subscribers to resubscribe to the web with no fees going to apple. while apps have little to no generating power with apple, netflix's success could provide ammunition to negotiate with apple. >> if netflix is bypassing the app store, if i'm now going to access it, how does that happen? do i have to open up a web spaj or what would this look like

>> it depends. if you're a new subscriber netflix could encourage you to subscribe directly through netflix.com as many people have historically but if you're trying to renew your subscription maybe either your credit card changes or at the end of the year netflix could try to get you to switchover instead of just rescribing through ios as you generally have netflix could try to redirect you and make you open up netflix.com through your phone or do it through the netflix app directly it's too soon to say what it could do for the bottom line in particular but apple is also working on its own tv service, so netflix could be trying to take moreeenership over that consumer relationship to make sure they're not so reliant on apple and them sort of being the gate keepers of that relationship especially if apple could be working on a

competitor >> what apps are we on what apple tv permits versus the one netflix doesn't? >> i still know netflix is one of the most popular apps on the apple platform so there's no question apple needs netflix. they want people to watch easily through all of its devices both on your tv screen or watching on your phone so apple wants to be open and agnostic with some exceptions, as we saw with that challenge with amazon. but they've been very close with netflix. and it'll be interesting to see what happens if apple becomes a real rival to netflix in launching some sort of competitor -- some sort of competitor system to netflix they've been, you know, signing a lot of content deals recently, though nowhere near as much content netflix has. >> julia boorstin for us in l.a. the next time you request an

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welcome back toyota is reportedly set to invest $500,000 in uber to work on driverless car technology according to dow jones at $72 billion, and that brings us to today's quote of the day it comes from the uber ceo outlining a shift in uber strategy which along with driverless cars could change the way we use the service in an interview with the financial times he details a plan to move away from cars and towards electric bikes and scooters for shorter trips saying, quote, during rush hour it's very inefficient for a one ton hulk of metal to take one person 10 blocks >> although the company makes less money from a bike ride than by car, he hopes it'll pay off

in the long run saying quote, we are willing to tradeoff short-term economics for long-term engagement i found in my career the long-term engagement wins wars >> but said it would lead to higher proportion of longer rides and less congested roads i have to say there's a lot of debate ability who has a better walk at the open of the show there was no debate who was better on the scooter. >> i like the fact she's standing up straight and you're kind of hunched over >> that's because i was kind of too big for it >> would you use one >> i find it, a, quite dangerous. i wouldn't want to use it on a main road or go around on

streets on it. the great thing about a car uber is you get from a to b and you're dry if it's wet, cool if it's hot outside i don't know, i think it's the sort of walk versus drive, is there much of a mashlgt rket in between? i'm not sure there would be for me personally? >> i think there was a key point in all this that was actually not touched on in the ft story and that's like for cities here in new york you just had a cap put on by the government on the number of ride sharing vehicles that can be on the road. i want to know how much of it is they want to shift to scooters or you have regulators cracking down on it and becomes a hedge in their business. >> i love the reason he's given the rationale long-term, what's the best way to keep people engaged in the app but that raises the question

where are they going to do something profitable really interesting, but they've got the biggest mark share of ride sharing this will probably help them keep the market share but this pushes back profitability. i'm not sure i'd use them to actually get around. ta twe'll tell you why adding reilo your portfolio this week could yield big returns by the holidays web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

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click, call or visit a store today. welcome back to "the closing bell." retail stocks have been on a tear this year trading at record territory and is up 14% year to date >> our next guest says based on historic trends retail stocks could continue to outperform the s&p 500 all the way through thanksgiving joining us now is the ceo of johnson's research group thanks for joining us todaymism we've already gotten some pretty strong out of retail stocks. why is this week such a good time to buy into the sector? >> well, if you think about it morgan, it makes complete sense. this is seasonality trade. right now you've got the back to school shoppers spending money in stores like target, wal-mart. and then you've got on the heels

halloween, and then obviously the holiday season so it turns into not only a by the news from back to school, but also turns into buy the rumor of what's going to happen for the holiday season what i normally see when i look at the last 12 years or so, it outperforms the s&p 500 by 50% between labor day and the end of the november, so it's a great time to buy. and then what happens in #is everyone comes in and sells into that strength and santa klaus rally sells into that market great time to be into retail and consumer discretionary stocks. >> chris, you said the word discretionary, which is what i was going to come to is now the time to be buying the broad index or should now be the time to be stock selective, between individuals or consumer staples or discretionary >> you bring up a great point,

wilf when you bring up the correlation overall, it's the market overall we're seeing the correlation of these markets going down, which means it's turning into a stock pickers market xrt is one of the correlations that's staying relatively high it's moving as a group right now. >> why >> again, this is lot of people coming in and buying the rumor right now ofwhat's going to happen and that's been the case for years. a lot of people want to get into these stocks before black friday and again, the time to get out is when that news is hitting the wire, when we see the results from black friday. everyone sells into that strength so you bring up a great point, wilf, is it going to be a stock picker, yes. but in the consumer discretionary they're staying strong right now and because they're driven by great fundamentals >> is it big threat from the likes of amazon really priced in now? >> we're seeing a lot of people

get out, and the brick and mortars are starting to get not only in amazon's territory if you go to target or wal-mart, they're starting to compete in the online business, but at the same time you're seeing a lot of people out get out-and-out shopping amazon, obviously they're broadening their scope of what kind of businesses they're getting into but right now those brick and mortars are doing great. best buy is great example who has transitioned itself more into the online world and still maintained itself in the brick and mortar stores. up next we'll be back with the closing count down we've got 5 1/2 minutes left of trade. and after the bell we'll be joined by larry kudlow he's going to join us on a first cnbc interview to react with the president's tre alitadde wh mexico must watch tv, coming up later on "the closing bell." we'll be right back. making cars lighter,

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♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "the closing bell." about 2 1/2 minutes left of trade. it's been a positive session, indeed there are the four indices a full percent for the dow and nasdaq russell is lagging a bit but we shouldn't complain across the screens. it was a bit of a slow open relative to where we are now the open around 100 points higher on the dow. that news on the u.s. and mexico

trade really pushing us higher we're up 276 on the high today near those highs as we approach the close. sectors for you, certainly playing a factor financials right near the top and real estate and of course trade related sectors as well. and here's the ten year for you over one week. you can see that pick up in yield, why the financials are performing well. but also we saw a steepening of the curve today coming off a ten-year low and then just going to look at the dollar index as well as i bring in bob pisanny, and down almost another 0.5% there. >> the important thing is the dollar is the key. on days where there's been optimism on trade, which has been more often than not in the last week and a half to two

weeks, we've seen the dollar weaken we've seen industrials move up, metals move up, emerging markets move up. again we're see that today so my message today is we're getting a broadening of the rally. where you see industrials up 1%, tech up 1%, materials up 1%, financials up 1% that's a very powerful rally you can no longer say, oh, it's just the faang stocks. we are seeing the median stocks. there are various indices you can use that show average stock movements hitting historic highs. so the average stock is moving up now as well it's not just faang stocks so we've got to stop thinking about that we have the great earnings not declining, we have the strong u.s. economy and we have optimism on trade talks creating a very powerful push to the upside a couple of things missing, we don't have a lot of new individual stock highs and a lot

of volume. nobody other than traders here on the floor missing the volume, and that's kind of expected. >> but there is the bell we're up 264 points on the dow, right near the highs of the day. ringing the bell at the nasdaq is liquidia technologies thank you, wilf. welcome to "the closing bell." i'm morgan brennen in for kelly evans. wilfred frost will rejoin me here in a minute at post nine. here's how we're finishing the day on wall street as those trades settle. we've got the dow industrials ending at 26,049

a record close for the s&p 500 today. 2,896 led higher by materials, industrials and financials and a higher day for has dathe nasdaq as well stoc stocks surges on the news the u.s. has reached a deal with mexico coming up we've got the national economic director larry kudlow to join us on a cnbc interview to discuss you're not going to want to miss that and in s joining us today is mie santoli, and leading the dow today was goldman sachs with if he isser the biggest laggard on the s&p, amd the winner today and chipotle was the biggest decliner let's start with nasdaq crossing over that 8,000 level today for the first time ever. seem ahmedy has more

>> closing above 8,000, but it comes amid growing concerns around technology, whether it be concerns around valuation, a stronger dollar eating into profits or those ongoing concerns around u.s.-china trade tensions but in the face of those head winds the nasdaq closing above 8,000 for the first time ever. and tech's out-performance has been a persistent trend. it broke about 6,000 in april of 2017 7,000 in december. but it took in january this year to close above #,000 six months later and we're at 8,000 for the nasdaq in terms of stooks leading the index to the upside. apple up about 14% in the past one month. netflix, facebook, alphabet all posting gains. chip stocks a big rebound there. intel leading the pack but it's not just technology in the past months some of the big stand outs include t-mobile,

ross stores where a part of this big retail rebound, and illumina, the bio tech name. in fact the bio tech posting its best day in a month. a broad level of participation, and we even saw a rebound in chinese tech names the big question is whether we can continue to build on these gains, a lot of focus on the u.s. dollar and of course whether we can see any type of solution on the u.s. trade front. >> let's discuss tech and the nasdaq more with our panel mike, it's interesting if you look at the chart for the nasdaq at the start of the year there's been some big pull backs when the rest of the market pulled back they've continued and it's broken past them, but the pull backs has gotten more consistent, which is kind of odd as you get to the later part of a rally. >> the nasdaq has built-up a lead, and it's not been an

area -- first of all, the nasdaq about 30% five stocks. basically if you have those up trends and none of them pulling out hard the nasdaq is going to be an outperformer the big glamour growth stocks it would be unusual to have those new highs and those not participating. what you had today is maybe a bit of a softening of the trade rhetoric some of the beaten up areas like autos and industrials could have an excuse to bounce. that's the way i view it today you have many things lining up thatkind of made it irresistible to say, fine. >> as we pointed out on the air throughout the day it's been pretty broad-based in terms of the gains today. we've certainly seen rotation into the encyclical stocks as these trade talks seem to soften, at least here in north america. are investors being too

complacent or is this the move you're suggesting to folks looking to put their money right now? >> we actually put out a piece last week on defensive stocks verse cyclical stocks. we think that is absolutely positivity the wrong move here short-term money became too defensive, and quite frankly we're overweight financials, industrials and materials and have been all yearlong i think mike santelli told it best with what's happening in tech, those five big names are results of consumer staplish tech that has such strong cash flow, such strong balance sheets, very consistent growth, are not the go-go tech stocks, and everybody seems to think the tech sector is going to have some kind of tech reck again

i think today is positive step in the right direction >> does the fact we have now crossed an important psychological milestone mean we pile on from here or people take some profits >> i know there was some big concern when facebook had the problem with earnings a couple weeks ago. but if you look at technology companies, what are they really benefitting from they are huge beneficiaries of changes in tax rates because of their hot profit margins and these are companies that are really at the next phase of the economy. essentially it's going to remake the economy. news out of ush today, which isn't so much tech but really more of an innovation sort of space. i just think you're going to continue to see tech can be a strong player in the economy even though mike is absolutely

right, the nasdaq index is really just a very limited number of stocks that runs the tables up. but i still think tech is really a place you need to be >> and mike, we're in the final trading week of august august for stocks, 2014, do we expect that to play out again this year? >> it's interesting, you would think we're setting up for something like that. we've run out a little bit of momentum i think for the very short term but last year, september or not didn't matter. in fact last year the third week of august was really when the market got liftoff of course we are statering to price in a potential tax cut and the rest of it seasonal stuff, it's kind of the broad proclivities of the market it doesn't really give you a

tactical edge. >> the u.s. did reach a trade agreement with nafta today >> the president is calling it a deal mexico is calling it an understanding. either way it is significant progress by the two countries to resolve some of the thorn yr issues that have been plaguing nafta talks like content requirements for cars and new rules about wages for the factory workers make those cars. imports of produce and also a 16-year time frame for the deal. the u.s. back down from a proposal that all parties could walk away after five years but it doesn't undo steel and aluminum tariffs placed on mexico or canada it doesn't outline how disputes should be resolved between the parties. and it doesn't really preclude any sort of trilateral deal. canada would be needed to work out its own issues with the u.s. like steep dairy tariffs that the president has been criticizing. canada's foreign minister will

arrive in washington tomorrow to begin those talks. but today's mexico's delegation said a three-party agreement, that's their ideal but it is possible that the u.s. and mexico could go it alone >> just a comprehensive understanding, so we could move forward in that event. that is a possibility. obviously that is not our desire >> and that would present a legal dilemma for the white house and gop leaders. senior administration officials believe that they have the authority to move forward with the bilateral deal that was announced today. congressional aides from both sides of the aisle say they don't. and some of the most prominent republican lawmakers that could we needed to move any trade deal forward called today's announcement preliminary and said canada must be part of any potential deal certainly we've seen stranger things happen in this administration but there's going to be a lot that needs to happen

before friday afternoon. guys >> absolutely right, kayla thank you as always. we'll be asking larry kudlow about all of this coming up on "the closing bell. mike, in terms of what this all means for the market, if if we don't see nice crystallized either by being approved fully, does the optimism we see today in the market, do we start to see pull backs >> for me trade has always been one of thoese things that just refilled the skepticism in the market therefore it's much more about the psychology of it and i think right now the psychology we've been living with the potential threat and the tariff exchanges and all that for so long, and i don't think it's reel necessarily a make-or-break moment we have to get this deal or else the market falls apart

>> michael, do you agree ye >> yeah, i do agree. and i also want to comment on china. i think what happened with mexico in mexico is really in my view what's going to happen in china. there's going to be lots of posturing. and what the market is really looking for, even though the market is responding positively to the mexico deal, if there's a dovish movement, i think that is going footo be a be a positive psychology on the market >> you mentioned it was a positive for your sector picks yesterday. the auto stocks in particular have rallied higher today. of course, thifb been very heavily affect bide trade. do you think it'll continue here, or is it a 4% bounce in some of those names pricing in the optimism already >> on a near term basis, probably those types of moves and

probably too much, too fast. i think some of our brothers and sisters in canada, remember i worked for the canadian bank, and i think canada has to gets a deal done. i think people really aren't talking too much about that. the canadian dollar is stronger today. so a market in canada is telling you a deal is going to get done. but i think talking to our marketing clients we've had all yearlong they pretty much were p taegs we continue to anticipate a deal will get done, and i think that's what the fundamental realities quite frankly are. >> brian, thank you very much for joining us this afternoon. michael, thank you also. we've got some breaking news out of washington. a new statement from the president on the passing of

senator john mccain. >> yeah, morgan, that's right. the white house has now reversed itself after a day of criticism here for not lowering the flag to half staff. the flag had been fully raised today in honor of john mccain's death, and the flag has now been lowered to half staff after the president put out a proclamation encouraging it to be done that way. the president saying in a statement despite our differences on policy and politics i respect senator john mccain's service to our country, and this comes just about an hour after the american legion's national commander urged the white house to follow long established protocol here and issued this proclamation there have been some questions about some veterans groups as to why the president hadn't issued the proclamation in the wake of the death of senator john mccain over the weekend as he had done

in the wake of several other prom independent americans earlier thin this president's tenure the white house reversing course, though, and the flag is now at half staff in honor of senator john mccain. >> aemon also clear, the president himself won't be attending the funeral or services is that a surprise or not really >> no, that's not a surprise and would appear to respect john mccain's wishes who would attend his memorial service in the wake of his death and the president has been asked by reporters in various events for comments on john mckaincainn he's not responded for comments on the death and john mccain was the deciding vote against the move to repeal obamacare. that'sing something that the president long resented, and the president had harsh words for him on the campaign trail.

now we're seeing some of those tensions play on even after the death of the senator now, shares of tesla finishing the day lower after elon musk said late friday he was going to keep the public public after his emotional interview with "the new york times" earlier this month, will this move put pressure on the company to higher a number two we'll be discussing that next. and stocks rallying on the news of a u.s. trade deal with mexico coming up national economic council director larry kudlow joins us with his take and whether a similar deal will be reached with canada. >> and we want to hear from you, we wait as well, and you can reacout h to the show on twitter, facebook, and e-mail as well "the closing bell" is back after the break. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish.

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tesla shares ending today lower. ceo elon musk announcing late friday he will keep the company public after an infamous tweet august 7th he was considering taking the company private >> and he also gave an emotional interview to "the new york times," giving some investors worry about continuing at the helm of tesla. would it be good if someone other than musk became ceo of tesla? jim, i'll start with you

you're the view that he needs to remain as ceo of tesla, is that right? >> yes, that's correct he's really the visionary. he's a creative genius, and his imprint is definitely on the company. but he's got to stay high flf to be strategic and let someone else worry about the day to day business #two mak a number two makes a lot of sense. >> i don't think he necessarily needs to leave the company but he needs to reconsider the way he runs the keim i think the truth of the matter is there's this classic dilemma whether the original visionary can lead a large complex with a lot of operational problems. i think leadership is team sport, not a solo effort and i think if you show me a successful company i'll show you a strong leader that can lead a strong team. he seems to be emotionally

exhausted and i don't think he's establishing a strong team underneath him i don't think that's a recipe for success. >> jim, we had some analysts come out and basically question musk's credibility and the credibility of tesla in light of everything we've seen in the last couple of weeks "the new york times" story he suggest they were looking for a coo, and there was a comment today in reuters that an active coo search was not under way how important would that be in adding more credibility to this company right now? >> i think it's important. the customer base, the success they're having, the technology, there's no question he's onto something but executing it is going to be difficult. and the challenge they're going to have is with this model 3 moving from a low volume to high volume model, and that really take as lot of additional management and pressure. he has a good number two at spacex it obviously work tlz. it seems logical as this company

grows to bring in somebody to worry about growing the company, operating it day to day and letting him really focus on strategy >> you mentioned the classic kind of dilemma when an entrepreneur and a startup build into a much bigger company one of the issues that stops them from transition is not letting goal of some of the reigns if so, what would be the ideal structure from your perspective to get investors happy again with the leadership there? >> i agree with jim, what he said, i think it needs a strong number two you've got muddles for success already. if you look at bill gates, he had an extremely good operator if you look at steve jobs, tim cook had a good recipe there so obviously that worked so i think that's a fundamental. but that alone is not enough it's not a solo, it's a choir.

you need to have a strong team that plays all the roles, all the positions are played well. so it's back to this point that it's just not a solo sport nor is it just two people who can do the whole thing it's team building i think at an executive level and i think that's important here. >> when we consider the polarizing debate we have on this stock like we had in the first hour, it seems almost everyone has agreed the stock, whether you're a bull or bear, can benefit for some kind of change in leadership if we see a change indeed so the people believe he's the genius behind the company don't get bearish, but also there's the operational help, how much could that be worth in stock terms are we back to 420 >> that has to prove that it works in demonstrating the production remains on track. all the tangible things you have to look for. i think in refreshing the board

or enlarge the board with a little more outside expertise. google, facebook google was interesting the founders stepped back. they got adult supervision, and then he moved on and they took control. it's not as if someone has to truly be oat out to pasture if you're someone like elon musk who i believe is the chief engineer as well >> what about twitter? is that something the company and the board should be taking a closer look at in terms of implementing a policy given the fact it's such a chief means of communication for him the. >> i think in a lot of companies there are a lot of examples where twitter has become this direct line of public communication, and in a good company with governance you've got coordination and you're working through a communications strategy within the organization it seems to me that twitter needs to go through a more formal channel to be part of

exactly what the company is saying individually what he wants to say is different from what he's saying representing the company. but twitter helps instantly communicate, so there's some advantages to it but it needs to be disciplined, and needs to be throttled in i think. >> willy, just over all we always talk about elon musk and whether he's been right or wrong in this. what about the board of tesla? should they take some rap as well >> i think there's a big responsibility here, when you think about oversight to make sure there's a strong strategy in place to leetd tad the compa a good place, there's a team to implement that strategy, to be able to persuade, if you like or insist that the ceo in the interest of the shareholders takes those steps i think that's a fundmental issue president trump striking a trade deal with mexico, but tensions with china still heated and that could have a big impact

on energy prices we'll be discussing which way they might head coming up. but first the nasdaq etf posting its best day in a month as the broader climbs above the 8,000 level. the fast money traders joins us next is with me through retirement, i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement.

welcome back to "the closing bell." let's take a look how we finished the day on wall street. nicely higher. the dow up 259 points.

the nasdaq up crossing through 8,000, nearly 1% russell did lag in terms of sect sector performance we did see financials, materials and industrials outperform coming up in just a few minutes national council economic director larry kudlow will join us to discuss the u.s. trade deal with mexico not going tawant to miss that. let's get to smof the other big stories today in our rapid recap. >> the nasdaq hits 8,000, almost at the same moment that the dow hits 26,000. >> you cannot fight this market. this market is telling you that despite all the risks that are out there, and granted they're mitigated today, it wants to go higher >> late friday night elon musk changing course saying that he will not now take the electric car company private. >> they used to call it nafta. we're going to call it the united states-mexico trade agreement.

we'll get rid of the name nafta. it has a made connotation. i'll be talking with the china prime minister very soon the stock market just broke 26,000 >> it's 60% we end up with this fairer trade we get positive. there's a 20% this slips into a global trade war but there's a 15% chance of what i call a reagan moment for trade. that would transform the landscape of trade >> dow industrials ending the day at 26,049. and closing above 8k, first time ever for that. >> the nasdaq obviously outperfo outperform, but it's really the

trade related today. also materials and industrials as well. >> absolutely. you see names like kansas city rallying and and that has been a bellwether for the mexico-u.s. trade tension. and trade was really what dominated the story. >> mike, how much of the rally today is on the back of the weaker dollar? >> i think that's part of the backdrop, of course the glow that's continuing after friday's j. powell comments so this idea that the fed is not going to get in the way, it's not going to view economic momentum as a bad thing and has to get impatient about rate increases helping to bring the dollar down. also the russell 2000 was an underperformer today that was the flip side of the optimism on trade because that is where you hid when you thought there was going to be a trade war. let's have a news update >> some final words today from senator john mccain shared today by his spokesman rick davis.

davis reading a statement written by mccain saying in part, quote, do not despair of our difficulties, we always believe in our promise and greatness of america, end quote. the flag at the white house lowered this afternoon back down to half staff and president trump saying it will remain that way until mccain is buried on sunday and fire at liberty island forcing hundreds of tourists to evacuate three 100-pound propane tanks caught fire. crews were able to put out the flames, however. and odel beckham snagging a five-year $95 million contract extension with the new york giants the wide receiver known for his one-handed catches gets $65 million of that in guaranteed money. and a small town in spain coming up with an animal friendly version of the running of the bulls it is the running of the ball. that is a 550 pound plastic resin ball which is rolled down a hill as people scamper out of the way.

but just because it's better for the animals, doesn't make it any safer because one person was hospitalized with a head injury. after all, it weighs 550 pounds. get out of the way >> i did the real one. i wouldn't do either again no chance. >> that's right, i forgot you did the running of the bulls >> i was a foolish 19-year-old never again. sue, thank you very much >> you got it, guys. well, bio tech stocks are higher today along with the broader market with the nasdaq climbing nearly 2% with one of the best days of the month >> guy and tim joining us now to discuss. no doubt they'll step all over each other as well >> you've got to ask a question. if you don't ask a question there's no way for us to answer. >> that's all we've got time for with guy and tim i'm joking

guys, talk to us are there some real fundamentals behind bio tech right now. >> if you look not only big cap pharma but bio tech has been on fire ever since. today obviously is a great name, and i still think their names will work. i really think this comes down to people finally see the pull size off the back. >> bottom line here is the sector you continue to see beat and raise in the second quarterquarter, they got possibly five new pipeline drugs come through in 2020 but i think the valuations are very interesting here. great balance sheet management,

great dividends, buy backs >> mike, what about the big cap pharma versus these bio tech names? >> i think big cap has a lot of room again, valuations still make sense. i do think what hurt these stocks for a long time, they were under sort of the myriad of bad news from the administration in terms of big cap pharma i think that bulls eye is off, and i think people are coming to that realization now >> all i would say in big cap pharma versus bio tech, look at the chart going back two years this is fantastic chart. it's been slow and steady. the top four or five names in that etf i'd stay with bio tech >> if you and mike agree with it, tim and i will go run with these bulls, or this 500 pound ball, whatever you guys urin

>> i've done it, and i'm not going to do it again >> why do i have a problem with that, you guys running >> i'll in i just got to be faster than you, morgan. that's what's it comes down to >> that's right. >> the best thing about it is the beer at the end of it, which we should just skip to anyway, gents, we're going to have to leave it there thanks very much and you don't want to miss tonight's show it's a bitcoin bonanza. the bitcoin jesus himself will weigh in on the future of bitcoin in a very special fast money. >> and after fast money stick around to catch melissa lee's new documentary 6:00 p.m. eastern, 3:00 p.m. pacific >> we will discuss the fact president trump of course struck a trade deal with mexico outside of nafta, and national economic

council director larry kudlow weighs in first. but first sticking with trade, china has proposed a 25% levy on u.s. natural gas in its latest round of retaliatory tariffs. what this means for the future of l & g exports itself. that's coming up and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

welcome back china proposing a 25% tariff on u.s. liquefied natural gas, as trade tensions remain high between the two countries. the possible commodity on the tariffs comes in retaliation to u.s. tariffs >> analysts say it won't have the impact on lng imports if imposed. thanks for joining us. let's explore that thought how much impact it will have of course china does import a lot of lng but most of it is from places like australia and qatar, is it not? >> for the time being, absolutely the u.s. only has two lng exports currently operating. one in louisiana and the other

in maryland. now, there will be three more starting up, actually four more starting up over the next 18 months, so that will increase. lng just like crude oil is fungible what i mean by that is you can switch out lng from one supply to another pretty easily what ultimately matters to an industry is not so much whether china buys it or will somebody buy it total supply and total demand are really what matter so if this tariff lasts a long time, what will happen is u.s. lng will go to markets other than china you know, perhaps europe, korea, taiwan, india. and china in turn will buy more from countries other than the u.s. qatar and australia, probably new guinea will all be logical sources.

>> to dig into this idea it will be fungible given that fact, does it actually require changes to it supply chain or is it really just a matter of where the ships are destined >> it's a matter where the ship are going. most lng are sold under contract so the real questions is will chinese buyers like petrachina be willing to see new purchase agreements with u.s. suppliers as it stands there is only one such deal and it involves chinese buyer -- which operates that pass terminal but there's so many early stage preconstruction u.s. ng product, by the way, in canada, too, that have been trying to sign these

agreements so if china is not going to be receptive to signing those deals, then these companies will have to, you know, shift their business development elsewhere, and china will need to source lng from other suppliers so the supply chain will adapt, as it always does. you know, it's just going to take time. >> pablo, thank you for joining us >> up next white house advisor larry kudlow joins us with his take on the trade deal with mexico and any hope of reachg in a similar accord with canada you're watching cnbc, first in business worldwide making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here.

after more than a year of talks on nafta and six plus weeks of talks between just the u.s. and mexico the presidents of those two countries have come to to an agreement on some key trade issues >> joining us is larry kudlow. thank you for joining us >> thank you, wilfred. appreciate it. >> do you see today's deal and announcement as a sign that the president's tactics on trade are working? >> yeah, i do. i think this is big victory. it's a big victory for growth and prosperity, a big victory for cooperation, a big victory for free and fair trade. i think all these things work together and yes, you know, one of things he's argued for quite some time is bilateral negotiations are

really more efficient than all these multilateral negotiations whether it's three countries or 23 countries and i think that paid off with mexico and hats off to mexico. they're doing a great job in cooperating and reaching a very important deal where both countries. >> what's the message to canada, larry? well, the message to canada is look carefully we would like to coordinate with you. we would like to make a good deal with you. you've seen a lot of the issues. we also know there are stumbling blocks with regard to canada but for now we're going to celebrate the mexican deal, which by the way most folks or many folks didn't think we'd ever reach and we hope canada is watching carefully at how successful negotiations can go. >> and what's the plan, larry, if canada doesn't join the party? can the bilateral deal still be pushed through as it is, and is it that possible before the mid-terms? >> we believe the bilateral deal

could be pushed through congress as it is i'm not a lawyer, but, yes, we think it can regarding the other side with canada, again, we really would like a deal with them. there are a bunch of issues. we've been at it for some time they know the issues, we know the issues but i must say from time to time, the president has said if we can't reach a good strong fair deal with canada, we might have to resort -- the u.s. might have to resort to auto tariffs so we'll see what happens. hopefully canada will cooperate and move the ball in our direction. but today's mexico day the market loved it. i think that's the growth component. you know you look down the list. labor value is increased intellectual property is protected. we're seeing big increases in financial services, barriers are being reduced in agriculture barriers are being reduced in

bio technology it's a long laundry list, but we accomplished a lot, and i think both countries are better off for it this is really an example of how the supply chain in north america -- and we're talking about between mexico and the u.s. -- that supply chain worried lots of businesses i think correctly see, will not only be maintained the supply chain will be strengthened and the various paragraphs, the various issues in this will be more enforceable than ever before >> you're talking about a potential strengthening of the middle class as well when it's a higher quota, higher paying jobs in the automotive sector as well i know that the white house is legally bound to a three-party deal that includes canada. there's been a lot of debate on our air if a bilateral deal with

even move through congress right now. can it >> look, i'm not a trade lawyer. as i said ambassador lighthizer is the expert on this. he believes a bilateral deal can be moved we're going to be signing a document towards the end of this week, that puts us in the roughly three day to 90 month period that's just the crinology. legal or not legal, i'm not sure i'm the person we heard that legal or not legal would be bilateral the key point here if you're looking for look, if you're looking for investment, if you're looking for win-win, free and fair trade, supply chains and all the rest of it, this is great deal this is tremendous victory it's a big "w. again i invoke mr. lighthizer

and jared kushner, and of course president trump has said this all along. bilateral negotiations yield better and faster results, and i think that's why he's going to stay on that path with respect to canada. but right now we're mexican tra very few people thought we could get and we got it about. >> it's easier if you do it blats rally, to get some kind of framework agreement in principal that may or may not become a trilateral agreement the way you propose it, we're operating on an artificial schedule i just wonder if we're going to play this out a few steps down the line, whether in fact this is the makings of some kind of a final deal or not. >> there's no leverage here, we've illustrated the bilateral approach to negotiating can

happen you have different issues with canada than with mexico. the wages are not so germane to can dark i don't want to walk-through all the paragraphs, but we've had trouble with milk and dairy products and some of that dairy stuff is 290% tariffs i don't know about the leverage. all i'm saying is we have shown that good trade negotiations on both sides can work. we've shown that we can answer a lot of questions about the health of the economy of both mexico and the u.s that's why i say it's a great victory for growth for free and fair trade. international koochgs. people can learn from that, frankly, i hope the canadians come to terms. they're coming down here i think tomorrow we'll see how those negotiations

progress that's all i can do for now. i don't think it's a question of leverage, i'm just being realistic. >> larry, let's talk about china. the yuan has slid in the last several trading sessions is the fact that they've decided to stem their currency something you welcome and something you and the president had urged them directly to do >> i'm not going to comment on currency movements, that's a treasury department issue. it's always better to have stable currencies. always better. we had some stability with the yuan through the years many people, myself included, thought there was a lot of currency manipulation. this sprich and summer, maybe it's right, maybe it's not

i think you have problems with the chinese economy. whether you're looking short term or long term. we've seen a big slump in china, investment china retail sales. i think money has been flowing out of china, i think capital has been flowing out of china because of economic wraekness, because their state capital smile doesn't work the interesting thing here -- the u.s. is the hottest economy in the world our entrepreneurs are large and small businesses our workforce and our unemployment rate, we're crushing it right now. money is flowing to the place where it's treated most hospitably if china would fake a look at some of the things we've been asking they might have a more satisfactory response.

remember, years ago, when i was here the last time, working at omb. mrs. nancy reagan had a great campaign against drugs she was right on, she said, just say no people mocked her for a bit, but she was dead right i would give some advice to my chinese friends, sometimes just say yes. you get nothing from them. whether it's technology transfers or ip or ownership or commodities, they never say yes. how can we go in good faith with that very core point of view if they change it would be most welcome. i think that's part of the decline. maybe china will have a look at some cooperation between the usa and mexico by the way, we're beginning a lot of cooperation with the usa and the european union people can learn from these if you have ernest good will kinds of negotiations. you can do it if you wan the to

do it. it's great to see you, thank you very much. >> larry kudlow. we'll continue this conversation on trade tomorrow morning on squawk box when steve mnuchin will join us at 8:00 a.m. eastern time jet blue taking a big step that could have some customers seeing red those details next where satellites feed infrared images of his land into a system built with ai. he uses watson to analyze his data with millions of weather forecasts from the cloud, and iot sensors down here, for precise monitoring of irrigation. it's a smart way to help increase yields, all before the rest of us get out of bed.

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welcome back to the closing bell jet blue's bag fees are taking off by $5. people who are buying the cheapest fair will pay $30 for the first bag. $45 for the second checked bag >> my idea on this is welcome, breaking down the individual parts of it, you can cherry pick, don't need to buy alcohol, wifi or bags if you do, they have to deliver an efficient service with that service. they haven't quite nailed that a small hike, we can pick which is the cheapest, which services you want as long as it works.

>> there's an interesting arbitrage that's going on. they're incentivizing people to carry on everything they can carry on the bins fill up, if you wait, they'll say, we'll gate check your bag free. there's a lot of people playing chicken with the policy, i think i'm going to carry on this big bag, and they'll say, forget about it, we'll do it free it's an inefficiency in the process, i agree with you, if you go over the rock bottom fare, then you pay a premium >> how many people are going for the rock bottom fare i think it's interesting that jet blue is doing this, they were one of the last holdouts in terms of charging for checked bags they only implemented that policy themselves back in 2015. >> let's switch back to the big markets. had we not had the good trade news today would we be in positive territory? >> it may have just rallied a third of a percentage sat there,

you had an excuse to go for some of the beaten up industrial areas. first, new high in seven months. it's a long repair process, probably more positive than negative that you extended friday's new high. >> mike, great stuff morgan >> that does it for closing bell, fast money starts now. fast money starts right now, live from the nasdaq market, overlooking times square traders on the desk -- tonight on fast, it's a bit coin bonanza. we have guests lined p we start off with what fueled today's market rally